Game on Oprah! John Oliver’s $15M Giveaway; Fortune 500 Companies’ Latest Surprises; Burberry Boss Paycheck Getting a Whole Lot Smaller

New queen of daytime…

ID-10034353

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Move over Oprah. John Oliver just achieved god-status in the television talk show realm after buying nearly $15 million in medical debt and then forgiving it. Poof. Just like that. On his latest show “This Week Tonight with John Oliver,” the talk-show host took on the debt collecting/buying industry, which can be dubbed “shady” at best. Oliver said, “It is pretty clear by now (that) debt buying is a grimy business, and badly needs more oversight, because as it stands any idiot can get into it.” So John Oliver did “get into it,” and spent just $50 to start his very own debt collection company called Central Asset Recovery Professional aka CARP. It’s no coincidence, he pointed out, that the company is named after the bottom-feeding fish. Oliver’s company was almost immediately offered close to $15 million in medical debt from 9,000 Americans, social security numbers, names and addresses included, for just half a cent on the dollar. In case you were wondering, that came out to about $60,000. Then, with the simple push of a red button, John Oliver, forgave the debt, presumably with funds from his own bank account. But most importantly, Oliver easily trumped Oprah Winfrey’s 2004 television giveaway, when she gave out $8 million worth of cars to 276 audience members. And he didn’t even do it for ratings. Sort of.

Rank and file…

ID-100392967

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Fortune Magazine’s annual list of the biggest 500 companies by revenue for fiscal 2015 is out and it was Netflix that was making big waves this year. The video streaming site, which launched in 130 new countries in January, and was the top fiscal performer for 2015, ticked up 95 spots to the 379th spot. However, while the climb was quite impressive, there are still 378 companies that rank higher than Netflix. Rounding out those top spots are Walmart, ExxonMobil, Apple and Berkshire Hathaway. No big surprises there. Apple, by the way, which moved up to two spots from last year’s fifth place, was the most profitable company on the list, earning $53 billion for fiscal 2015. Companies including GM, Ford and AT&T also cracked the top ten with Amazon landing at number 18 and Walgreens following close behind at number 19. Microsoft managed to crack the top 25 for the first time ever as Facebook climbed 85 spots this year to claim its 157th ranking. Interestingly enough, more than half of the companies on the list saw a drop in sales, with energy companies taking the biggest beating of all.

Pay raze…

ID-100423700

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

The CEO of Burberry Group PLC, Christopher Bailey, will now have to switch to generic brands when he goes grocery shopping. After failing miserably to post respectable earnings results, the dapper exec will watch as 75% his paycheck vanishes into thin air. The CEO, who also serves as the Chief Creative Officer – and herein, might lay the problem –  will earn a paltry $2.74 million this year, a far cry from the $10.8 million he scored last year. Shareholders are also withholding his bonus for missing profit targets. That might seem a bit harsh, but shareholders in hundreds of companies are getting fed up with massive executive salaries that are completely at odds with results. Bailey, however, is not the only executive at the company who will be experiencing the fiscal wrath of the Burberry shareholders. Executive directors at the fashion house will also be stripped of their bonuses this year, because after all, it’s not like Bailey was solely responsible for shares of Burberry taking a 35% hit in the last twelve months. Burberry has announced that it will implement a cost-cutting plan – that has little to do with Bailey’s pay cut – in addition to a share-buyback program. Prudent moves when a companies reports disappointing fiscal earnings. But the earnings may not be entirely Bailey’s fault. Consider that 40% of Burberry sales come from the Chinese, who are in the midst of their own fiscal woes.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s